PJT Partners (NYSE: PJT) and Lazard (NYSE:LAZ) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitabiliy and analyst recommendations.

Valuation and Earnings

This table compares PJT Partners and Lazard’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PJT Partners $504.90 million 1.63 -$2.41 million ($0.13) -342.00
Lazard $2.45 billion 2.54 $419.14 million $3.23 14.83

Lazard has higher revenue and earnings than PJT Partners. PJT Partners is trading at a lower price-to-earnings ratio than Lazard, indicating that it is currently the more affordable of the two stocks.

Dividends

PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. Lazard pays an annual dividend of $1.64 per share and has a dividend yield of 3.4%. PJT Partners pays out -153.8% of its earnings in the form of a dividend. Lazard pays out 50.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PJT Partners has raised its dividend for 6 consecutive years.

Insider and Institutional Ownership

58.1% of PJT Partners shares are held by institutional investors. Comparatively, 73.7% of Lazard shares are held by institutional investors. 3.3% of PJT Partners shares are held by company insiders. Comparatively, 2.5% of Lazard shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares PJT Partners and Lazard’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PJT Partners -0.39% 1,891.52% 10.86%
Lazard 17.06% 36.15% 10.38%

Analyst Recommendations

This is a breakdown of recent ratings for PJT Partners and Lazard, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PJT Partners 0 0 1 0 3.00
Lazard 0 3 4 0 2.57

PJT Partners presently has a consensus target price of $45.00, indicating a potential upside of 1.21%. Lazard has a consensus target price of $46.29, indicating a potential downside of 3.39%. Given PJT Partners’ stronger consensus rating and higher possible upside, research analysts plainly believe PJT Partners is more favorable than Lazard.

Risk & Volatility

PJT Partners has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Lazard has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.

Summary

Lazard beats PJT Partners on 9 of the 17 factors compared between the two stocks.

PJT Partners Company Profile

PJT Partners Inc. is an advisory-focused investment bank. The Company offers an array of strategic advisory, restructuring and special situations and private fund advisory and placement services to corporations, financial sponsors, institutional investors and governments. It provides, through Park Hill Group, private fund advisory and placement services for alternative investment managers, including private equity funds, real estate funds and hedge funds. Its advisory business offers a range of financial advisory and transaction execution capability, including mergers and acquisitions, joint ventures, minority investments, asset swaps, divestitures, takeover defenses, corporate finance advisory, private placements and distressed sales. Its Restructuring and Special Situations Group’s services include advising companies, creditors and financial sponsors on recapitalizations, reorganizations, exchange offers, debt repurchases, capital raises, and distressed mergers and acquisitions.

Lazard Company Profile

Lazard Ltd (Lazard) is a financial advisory and asset management company. The Company operates through two segments: Financial Advisory and Asset Management. It serves a range of clients around the world, including corporations, governments, institutions, partnerships and individuals. The Financial Advisory business segment offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a range of financial advisory services regarding mergers and acquisitions (M&A) and other strategic matters, restructurings, capital structure, capital raising and various other financial matters to corporate, partnership, institutional, government, sovereign and individual clients. The Asset Management business provides investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds and sovereign entities.

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